Difference between Mergers and Acquisitions

. A merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place. or e!ample, both "aimler#Benz and $hrysler ceased to e!ist when the two firms merged, and a new company, "aimler$hrysler, was created. %hile %hen one company takes o&er another and clearly established itself as the new owner, the purchase is called an acquisition. rom a legal point of &iew, the target company ceases to e!ist, the buyer "swallows" the business and the buyer's stock continues to be traded.

History of Atlas Bank:The Atlas 'roup established Atlas (n&estment Bank in )**+ as a ,oint &enture between Atlas 'roup and the Bank of Tokyo#-itsubishi, .apan. %ith an associated company, Atlas /ease /imited formed in )*0* as a ,oint &enture between the Atlas 'roup, the Bank of Tokyo# -itsubishi, .apan and the 1ational (n&estment Trust, 2akistan was merged into the Bank in ebruary, 3++3. After the merger, the shares of the ,oint &enture partners were taken o&er by the 'roup. The head office of the Bank is situated in 4arachi with branch offices in /ahore, (slamabad and aisalabad. The Bank is a member of all the three stock e!changes in 2akistan. The 'roup acquired a commercial bank i.e., Dawood Bank Limited in 3++5 and change its name to Atlas Bank Limited and merged the Atlas Investment Bank Limited in it. Atlas Bank is launching a %ealth -anagement group, geared towards high net worth indi&iduals in 2akistan. %ealth -anagement group will offer numerous products, along with financial planning, and will begin operations in 3++0. (n 6ctober 3++0, Atlas Bank announced it was going to merge with the 4A7B group, howe&er since a consensus on the way forward between the two parties could not be reached a decision by the sponsors for both banks was taken to withdraw from the planned merger with 4A7B Bank. 8owe&er, a new potential merger was announced early April 3++* between Atlas Bank /imited and 7audi#2ak $ommercial Bank. An -69 was signed between the two banks to proceed with due diligence to determine a swap ratio.

History of Summit Bank:7ummit Bank /td is one of the fastest growing commercial banks of 2akistan, which, in a &ery short span of time, has e!panded its network across the country and built an infrastructure based on state of the art :;isk -anagement ramework< as well as :(T platform.< Also targeting to be a uni&ersal bank in terms of pro&iding products and ser&ices in all key segments of banking i.e.

$orporate and (n&estment Banking, Trade inance, $ommercial -id -arket = 7->s, and $onsumer Banking, it commenced its operations in August 3++?. The 2akistan operations of ;upali Bank /imited were acquired by Arif 8abib 7ecurities /imited under the 7cheme of Amalgamation appro&ed by the 7tate Bank of 2akistan. The name of ;upali Bank /td was subsequently changed to Arif 8abib ;upali Bank /td and then finally to Arif 8abib Bank /td in 6ctober 3++@. 6n A)st -arch 3+)+, 7uroor (n&estments /td, a company incorporated in -auritius, acquired 5*.B)C stake in Arif 8abib Bank /td from Arif 8abib 7ecurities /td, and on )0th August 3+)+, Arif 8abib Bank /td was rebranded as Summit Bank Ltd. 7uroor (n&estments /td, also entered into share purchase agreements D72AsE with ma,ority shareholders of -yBank /td and Atlas Bank /td, who after completion of the transactions ha&e merged in 7ummit Bank /td e!panding the BankFs geographical outreach with a network of )0@ ;eal G Time 6nline branches across the country. (n line with the managementFs &ision of making this bank a front runner amongst its peer banks, this merger has brought synergies and access to a wider range of markets and customers.

Summit Bank and Atlas Bank legal merger

rom .anuary +), 3+)), 7ummit Bank /td Dformerly Arif 8abib Bank /tdE and Atlas Bank /td will officially merge and start operating as a single bank under the name of 7ummit Bank. The completion of the legal merger means that the two banks can now make accelerated progress in integrating their acti&ities. %ith effect from the merger date, they will be allowed to e!change and share client information and can start technical migration of client data. The proposed management appointmentsF pre&iously announced will also officially take effect at this time. 8ussain /awai, 2resident H $>6 of 7ummit Bank, issued the following statementI J)st .anuary onwards, the legal merger will be a reality. 7ummit Bank and Atlas Bank will amalgamate to form a single entity. ( ha&e great admiration for the tireless efforts that we ha&e seen on a daily basis from colleagues and ( am pleased by the trust that clients ha&e continued to place in us. %e ha&e managed to turn the two banks into a single business unit in a &ery short time. %e now look forward for the effecti&e data migration of the two Banks, enabling us for smooth operations of the combined entity.K As a result of the legal merger, all the rights and obligations of Atlas Bank will transfer to 7ummit Bank by operation of law under uni&ersal title. Atlas Bank will cease to e!ist on the merger date. The merger also means that all the branches and subsidiaries of Atlas Bank will be renamed as branches and subsidiaries of 7ummit Bank.

aid u! ca!ital at t"e time of merger:-

7ummit $apital D2&t.E /imited incorporated in 3++? with the paid#up $apital of 24; A++mn to accommodate the merger of Atlas (n&estment Bank /imited with Atlas Bank /imited. The $ompany at the time of inception acquired certain ser&ice led operations which ha&e been functioning as a part of Atlas (n&estment Bank /imited as it's wholly owned subsidiary. 7ubsequent to the merger of Atlas Bank /imited and Atlas (n&estment Bank /imited, this company became a wholly owned subsidiary of Atlas Bank /imited.
After merger:2 Atlas Bank Limited Summit Bank Limited 11/1/2011 5,001.47 [ 1 : 0.4 ]